CHICAGO--(BUSINESS WIRE)--Mar. 4, 2019--
OFS Credit Company, Inc. (NASDAQ:OCCI) (“OFS Credit,” the “Company,”
“we,” “us” or “our”), an investment company that primarily invests in
collateralized loan obligation (“CLO”) equity and subordinated debt
securities, today announced its net asset value and selected financial
results for the fiscal quarter ended January 31, 2019.
Total investment income of $1.60 million.
First quarter net investment income of $1.08 million, or $0.40 per
Net asset value of $18.82 per share as of January 31, 2019.
Closed investments totaling approximately $7.56 million during the
period ended January 31, 2019.
The weighted average GAAP effective yield of our collateralized loan
obligation (“CLO”) equity investments at current cost was 14.0%.
Declared monthly distributions on common shares through April 2019,
implying an annualized distribution of $2.00 per share.
“OFS had a solid first quarter despite a challenging period for the loan
market,” said Bilal Rashid, OFS Credit’s Chairman and Chief Executive
Officer. “We continued to prudently deploy additional capital in the
quarter at what we believe are attractive yields. In February, the Board
declared monthly distributions through April 2019."
"Looking forward, we are focused on increasing the asset base in order
to grow net investment income. We believe our commitment to capital
preservation and strong long-term performance is aligned with the
interests of OFS Capital Management, LLC, our investment advisor, who
together with other insiders own approximately 13% of our common stock."
"We believe our investment advisor is uniquely positioned to advise OFS
Credit given its expertise in both structuring and investing in CLO
equity, combined with its long-standing experience investing in
corporate loans that serve as the underlying collateral in CLOs. We
believe OFS Credit is one of the few options today for investors to
access the CLO asset class, in an exchanged-traded vehicle."
On February 8, 2019, our Board declared the following distributions on
||Dividend Per Common Share
February 21, 2019
February 28, 2019
March 22, 2019
March 29, 2019
April 23, 2019
April 30, 2019
PORTFOLIO AND INVESTMENT ACTIVITIES
During the period ending January 31, 2019, OFS Credit closed four
investments, totaling $7.56 million of CLO subordinated/income note
securities in three separate CLO deals. As of January 31, 2019, OFS
Credit's portfolio had exposure to 15 separate collateral managers. In
February 2019, OFS Credit closed one investment, totaling $1.72 million
of CLO subordinated/income note securities.
RESULTS OF OPERATIONS
Interest income for the period ending January 31, 2019 was $1.6 million.
Management fee expense for the period ending January 31, 2019 was $220
thousand. OFS Capital Management, LLC, our investment advisor, agreed to
waive the base management fee for the period commencing on the date of
our initial public offering through January 31, 2019, without recourse
against, or reimbursement by, the Company.
Net Gain (Loss) on Investments
Net losses for the period ending January 31, 2019 were $2.7 million due
to unrealized depreciation of $2.7 million and realized gains of $10
thousand on the sale of an investment, respectively.
LIQUIDITY AND CAPITAL RESOURCES
As of January 31, 2019, we had $3.9 million in cash and no long-term
debt. We have no restrictions or limitations on the use of our cash.
About OFS Credit Company, Inc.
OFS Credit is a non-diversified, externally managed closed-end
management investment company. The Company’s investment objective is to
generate current income, with a secondary objective to generate capital
appreciation, primarily through investment in CLO equity and
subordinated debt securities. The Company's investment activities are
managed by OFS Capital Management, LLC, an investment adviser registered
under the Investment Advisers Act of 1940, as amended, and headquartered
in Chicago, Illinois with additional offices in New York and Los Angeles.
Statements in this press release regarding management's future
expectations, beliefs, intentions, goals, strategies, plans or
prospects, including statements relating to: management’s beliefs
regarding the ability to deploy capital at attractive yields and to
increase OFS Credit’s asset base in order to grow net investment income;
management’s beliefs related to its commitment to capital preservation
and long-term performance; the Advisor’s unique position and expertise
in both structuring and investing in CLO equity; management’s belief
that OFS Credit is one of a few options for investors to access the CLO
equity asset class; and other factors may constitute forward-looking
statements for purposes of the safe harbor protection under applicable
securities laws. Forward-looking statements can be identified by
terminology such as “anticipate,” “believe,” “could,” “could increase
the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,”
“should,” “will,” “will enable,” “would be expected,” “look forward,”
“may provide,” “would” or similar terms, variations of such terms or the
negative of those terms. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors including those
risks, uncertainties and factors referred to in documents that may be
filed by OFS Credit from time to time with the Securities and Exchange
Commission. As a result of such risks, uncertainties and factors, actual
results may differ materially from any future results, performance or
achievements discussed in or implied by the forward-looking statements
contained herein. OFS Credit is providing the information in this press
release as of this date and assumes no obligations to update the
information included in this press release or revise any forward-looking
statements, whether as a result of new information, future events or
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Source: OFS Credit Company, Inc.
OFS Credit Company, Inc.